Cryptocurrency Cybersecurity Risks You Need to Be Aware Of
Cryptocurrency is digital money that is secured via Cryptography. Cryptography, in essence, is the process of encoding messages so that they are safe from prying eyes. With the rise of Bitcoin, the most popular form of cryptocurrency, there has been an increase in people looking to trade and use this type of money. But with that comes the question: what are some risks associated with cryptocurrency?
What Are The Cybersecurity Risks in Cryptocurrency?
In the digital age, people don’t realize that regular computers are often affected by harmful viruses and other pieces of malicious software. We’re all wired into the Internet now, which means we need to be prepared to protect our devices from this threat.
With all the blockchain talk about cryptocurrency, the risk is heightened because your crypto assets are stored on a laptop or a smartphone that you access from various locations. There are many ways cybersecurity threats can enter your device and compromise your security.
Compromised Registration Forms
It’s common for cryptocurrency exchanges to ask for your personal information. For example, if you’re using CoinBase to trade digital coins, the platform may need a lot of your details to verify that you’re a legitimate individual. But hackers know that people feel safer when storing their money in a digital format. This is why these criminals will place fake registration forms on the web. The purpose is to collect user data, like passwords and email addresses, before stealing their assets.
This is one of the earliest types of cybercrime, and it continues to be a problem today. Phishing scams are popular with email users, but their prevalence on social media platforms has also increased. What phishing does is essentially trick users into entering log-in information on websites masquerading as legitimate. It starts with a fake email that looks like it came from your bank and asks you to update your username and password. Many don’t realize that this is a scam and give out their personal information.
These are also known as DNS hijacks, which change the settings on devices to redirect users to different sites. The most common way they work is by fooling users into thinking they’re on sites like Facebook or Amazon. But in reality, these are phishing scams that try to steal your data.
Illegal Trading Platforms
Cryptocurrencies are often traded and stored on exchanges, like Coinbase, a centralized platform. When you have to hand over your money to an exchange, it’s challenging to ensure that the exchange is legitimate. Because of this, some individuals opt for peer-to-peer trading platforms instead. But some are illegal and scam you out of your money.
Cryptocurrency malware comes in several forms, including Trojans and bots. They can infiltrate programs like your web browser when you download an infected file and take over your device. These viruses can execute transactions, steal your personal information, or even show you fake websites to steal your data.
Stolen Credit Cards
Many individuals secure their digital assets by making online purchases using credit cards rather than debit cards or bank accounts. This is a safe way to buy digital coins, but you also need to keep your credit card information safe.
Compromised Security Settings
There are many ways to steal your cryptocurrencies, such as phishing scams, malware, and stolen credit cards. But the No. 1 way is by getting your security settings compromised to withdraw funds from your exchange account. You can do this through “port forwarding” or “routing” on your router, which is standard practice. The router enables you to connect to the network without downloading any software, but it also leaves ports accessible for hackers to access your account.
Stolen Browser Passwords
This happens when you’ve forgotten your Google, Facebook, or other accounts’ passwords—and then these criminals manage to get access. You need to change your password and ensure your devices are protected with solid password managers. A key thing to keep in mind is that you need to ensure that your appliances aren’t running outdated software. Hackers can easily target several vulnerabilities found in older versions of operating systems. Making sure all of your applications are up to date, including your web browser and antivirus software, is best.
Cybersecurity is a big problem, and the number of people affected by this threat is vast. When you use a centralized platform that may be easily hacked or use your credit card information to purchase cryptocurrencies online, your chances of falling victim to these sorts of assaults are considerably enhanced. Remember that hackers can use many techniques to attack your devices and try to steal your digital assets.
Always ensure that you’re secure and never give out your personal information. If you want to own some cryptocurrency but aren’t sure about the risks, many peer-to-peer exchanges are safe and secure. To learn more about cybersecurity risks, check out our blog now.